Financial institutions continued to dominate deal flow in the second full week of August, with ING Bank Australia pricing a A$1 billion (US$726.4 million) dual-tranche covered bond and DBS Bank Australia Branch printing a A$600 million three-year domestic deal. Elsewhere, Northern Territory Treasury Corporation syndicated a A$500 million May 2030 line.
NWB Bank (AAA/Aaa) launched a minimum A$15 million (US$10.9 million) increase to its July 2028 Kangaroo bond on 17 August, via Nomura. Indicative price guidance for the forthcoming deal is 55 basis points area over semi-quarterly swap, equivalent to 63.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
On 17 August, Newcastle Permanent Building Society (NPBS) (BBB/A3) launched a minimum A$50 million (US$36.3 million) increase to its January 2022 senior-unsecured floating-rate note (FRN), with indicative price guidance of 135 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to lead manager ANZ.
Northern Territory Treasury Corporation (NTTC) added another long-dated point to its curve on 15 August, with a A$500 million (US$363.1 million) May 2030 syndicated transaction, via ANZ, National Australia Bank and UBS. NTTC’s Darwin-based general manager, Alex Pollon, discusses strategy as the issuer seeks to fulfil the funding requirement of the government’s capital and infrastructure commitments.
Global market action in the lead up to DBS Bank Australia Branch (DBS)’s latest senior transaction had little effect on the outcome, the issuer says. With market momentum reviving in the week leading up to the deal, volume and pricing were another step forward for DBS in what has become an important funding market for the bank.
ING Bank Australia (ING Australia) (A/A3/A) launched a new, benchmark Australian dollar denominated covered bond transaction on 16 August. The forthcoming deal will be comprised of a three-year floating-rate note tranche, being marketed at 60 basis points area over three-month bank bills, and a five-year fixed rate tranche, being marketed at 80 basis points area over semi-quarterly swap. Pricing is expected on the day after launch.
On 16 August, Bluestone Group (Bluestone) mandated Commonwealth Bank of Australia and Macquarie Bank to arrange investor meetings regarding a possible residential mortgage-backed securities (RMBS) transaction from its Sapphire programme. The meetings will take place in Australia in the week commencing 20 August.
Commonwealth Bank of Australia (CommBank)’s return to the domestic market with its largest-ever senior deal highlights a sharp recovery in sentiment over the past month, the issuer says. It also suggests its strategy of providing clarity on pricing and tranching prior to launch paved the way for the substantial volume outcome.
On 16 August, China Construction Bank New Zealand (CCB New Zealand) (A/A1) launched an indicative NZ$25 million (US$16.4 million) increase to its June 2023 domestic line. Indicative price guidance for the forthcoming deal is 130 basis points over mid swap. Pricing is expected on the day after launch, according to lead manager Commonwealth Bank of Australia.